'Nail in the coffin': Wellington's Penthouse Cinema could face closure if council rates change
Wellington businesses, including the Penthouse Cinema, warn that a proposed shift from capital value to land value rating by the city council could lead to massive rate hikes. Owners fear these increases will force them to close their doors permanently.
Why it matters
The debate over land value taxation versus capital value taxation has significant implications for urban development and the survival of small businesses.
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A family-run cinema in Wellington says potential council rating changes could be the "nail in the coffin" for the movie theatre, if it was forced to pay an extra $77,000 per year in rates.
And a hospitality business owner is alarmed that paying an extra $100,000 in rates could also force him to shut the doors in a struggling inner-city.
Wellington City Council is consulting on a possible shift to the way it calculates rates - from a capital value to land value based rating system with feedback sought by 15 November.
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